The Shanghai Composite Index rose over 1%, returning to 3,900 points, with more than 4,800 stocks gaining. How will the market develop in the future?

March 25, the three major A-share indexes all closed higher in unison. By the end of trading that day, the Shanghai Composite Index was at 3,931.84 points, up 1.30%, successfully reclaiming the 3,900-point integer level; the Shenzhen Component Index was at 13,801.00 points, up 1.95%; the ChiNext Index was at 3,316.97 points, up 2.01%, leading among the three major indexes.

The combined trading value of the Shanghai and Shenzhen markets was about 2,179.83 billion yuan, an increase of about 96.61 billion yuan in volume compared with the previous trading day. In the whole market, 4,874 stocks rose and 560 stocks fell, including 105 stocks that hit the daily limit up and 4 stocks that hit the daily limit down.

From the trading board, the power sector surged into a wave of limit-up moves, becoming the biggest highlight of today’s market. China Power Liaoning (600396.SH) achieved an eight-consecutive limit-up streak; Hunan Development (000722.SZ) saw two consecutive limit-ups; and multiple other stocks such as Shao Neng Co., Ltd. (000601.SZ) and Xunjie Xing (688655.SH) also followed with gains. The strong performance of the power sector is closely related to recent positive policy developments for green electricity and expectations of a summer peak in electricity demand.

AI computing concept stocks have remained active. Stimulated by news that China’s average daily Token call volume surpassed 1.4 trillion, computing rental concept stocks directly benefited, with Oryte (600666.SH), Litong Electronics (603629.SH), Huanhuan New Net (300383.SZ), and others rising sharply. Subsegments along the AI computing industry chain—such as the CPO (optical module) concept and high-speed copper cable interconnects—also showed standout performance.

In addition, nonferrous metals and precious metals rebounded notably, with stocks such as Xiaocheng Technology (300139.SZ), Hunan Silver (002716.SZ), and Shengda Resources (000603.SZ) leading gains. Sectors including tourism and catering, media, chemical fibers, and semiconductor equipment also delivered solid performances. By comparison, the oil and gas and coal sectors saw pullbacks, while photovoltaic and lithium battery themes weakened.

On the capital flows front, the People’s Bank of China said that on March 25 it conducted a 785 billion yuan seven-day reverse repo operation using a fixed interest rate and quantity bidding method, with an operation rate of 1.40%. The bid amount was 785 billion yuan, and the awarded amount was 785 billion yuan. Wind data shows that the reverse repo maturing on the day was 20.5 billion yuan; based on this, the net daily injection was 58 billion yuan. Meanwhile, on the same day, there was also 4.5 trillion yuan of one-year MLF maturity, and the central bank simultaneously carried out 5.0 trillion yuan of MLF operations.

At the opening ceremony of the 2026 Zhongguancun Forum annual conference, relevant ministries and central institutions jointly rolled out 40 support policies for the Beijing (Beijing-Tianjin-Hebei) International Science and Technology Innovation Center. In terms of coordinated fiscal and financial policy, policies were issued to support offshore asset management institutions to invest in technology innovation via equity investment funds; support financial asset investment companies in doing a pilot program for equity investments; and encourage insurance institutions to participate in venture capital funds, among other measures—providing full-life-cycle financial services for technology-based enterprises.

After a brief adjustment in the recent A-share market, it quickly rebounded. Institutions generally believe that the current market has limited room for further large-scale downside probing.

“During March, the A-share market saw a relatively large-scale adjustment due to the escalation of the conflict in the Middle East. The benchmark index fell below the 4,000-point integer level, and investors’ confidence was affected to a certain extent. However, it can be made clear that the conflict in the Middle East only disrupted the timing of this round of the A-share market’s slow bull/slow bull trend, but it will not end this round of slow bull/slow bull trend, because the underlying logic supporting this slow bull/slow bull trend has not undergone fundamental change.” Yang Delong, Chief Economist at Qianhai Open-Source Fund, told the reporter of Jiemian News.

Guotai Junhong Securities said that looking ahead to the second half, the impact of micro-level trading shocks is expected not to last long. At the current position, it is not advisable to blindly sell off. China’s stock market is expected to form an important bottom and a “hitting zone.”

China Merchants Securities stated that, based on current A-share technical patterns and sentiment indicators, it has entered the second half of this downward move, and there is limited room for further major downside probing.

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